India’s energy shift creates ripples

India’s solar tariffs have fallen 40 per cent in just 16 months, an unprecedented rate way beyond any market forecasts, and its energy transformation will have a ripple effect, as is already seen in the UAE, South Africa, Australia and other countries.

The Indian government’s striking policy shift towards renewable energy sources – away from more expensive and polluting fossil fuels is a strong global endorsement of the country’s leadership, Tim Buckley, Director at the Cleaveland-based Institute for Energy Economics and Financial Analysis (IEEFA), told IANS in an email interview.

As for the impact of energy transformation on other global economies, he said it would have a significant ripple effect on other transforming markets, as is already being seen in markets as diverse as the UAE, South Africa, Australia, Chile and Mexico.

On the possible ramifications of the Trump administration’s executive order that attempts to dismantle the Clean Power Plan on emerging economies like India and China, Buckley said this could undermine the positive momentum globally.

“Or it could isolate the US,” he said. “Let China and more recently India take on a positive global leadership role, a move away from the US political and economic dominance of the last 60 years.” Read More…